How much tax are you guys forced to charge your clients on let's say $100?

It's about $15 for me.

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Have you ever had any problems where a client refused to pay, because your price was too high after taxes?

SECTLANDSCAPING

01-28-2012, 01:34 PM

I was quoting without tax say $100 then $12.70 in tax added but I got a lot of complaints about it. Like I was price gouging and trying to add charges to the bill. It wasnt just residential but a hotel too. They sent the payment in without tax. I had to speak with them to get them to pay taxes. Which is kinda funny because when the rent a room they add taxes afterwards just like I do.

So I started putting the tax in the quotes to eliminate this. Sometimes I might be higher because of it but the customer will probably notice I was the only one charging tax. If they have half a brain theyll figure out I'm the legit one.

eMCeeW

01-28-2012, 04:59 PM

What kind of services do you guys have to charge tax on? In my state I don't have to charge tax on services such as mowing, fert, etc. If you have to charge tax on every service that would deff suck.

dpld

01-28-2012, 05:36 PM

my state nj is 7% sales tax and that is the only one i have to charge at the point of sale and the rest for me is just income and payroll.

Yes some people buck however I do not make the rules however I have to follow them

WOW, thats a lot in sales tax.

TiedemanLLC

01-29-2012, 11:29 AM

We are lucky that we don't have to charge a service tax.

They tried to do a service tax a few years ago, it got passed but didn't even get to take effect, because the out cry from businesses made law makers repeal it.

mark123

01-29-2012, 04:39 PM

It was a pretty big issue getting some folks to pay sales tax when I first started. Some even told me it was illegal to charge sales tax. They were wrong of course. Hilariously wrong.

Mowing is taxable in PA. Leaf removal and snow removal is not.

eMCeeW

01-29-2012, 05:46 PM

Man, I am thankful mowing is not taxable in my state of Nebraska. I can see how that would complicate things. We do have to charge tax on pesticides applications such as grub control... but not fert or herbicides. mowing, snow removal, is tax free but if I remove leafs from a gutter on a house its taxable, same as powerwashing a drive is no tax, powerwashing a house is....
How do you guys pay these taxes? Is it quarterly or yearly?
With tax season comming up how do you guys prepare or stay orgainized? Any tips would be nice! What tax "tricks" have you guys learned over the years?

mark123

01-29-2012, 05:55 PM

How do you guys pay these taxes? Is it quarterly or yearly?
I used to pay quarterly but made too much last year and they moved me to monthly. If you make over $10000 taxable in a quarter you get moved to monthly. In PA you make sales & use tax payments online.

With tax season comming up how do you guys prepare or stay orgainized? Any tips would be nice! What tax "tricks" have you guys learned over the years?I use gopher and quicken (home & business). Print out the tax reports and take them to the tax lady.

dpld

01-29-2012, 06:27 PM

I used to pay quarterly but made too much last year and they moved me to monthly. If you make over $10000 taxable in a quarter you get moved to monthly. In PA you make sales & use tax payments online.

I use gopher and quicken (home & business). Print out the tax reports and take them to the tax lady.

in jersey if you have 500.00 or more in any one month of sales tax collected you have to go from quarterly to monthly.

i beleive my state did not even have state income or sales tax prior to 1979 and the only tax you paid was federal just goes to show you how bad and how fast the politicians screwed my state up.

Gnella

01-29-2012, 07:46 PM

Yeah, NJ is 7% buy only on labor. No tax on material if you pay the tax when you but it or it would be double taxation. Also, disposal fees are non taxable. Gets crazy. We were audited a few years ago.

Ducke

01-29-2012, 07:51 PM

There are only two things were guaranteed to get Death and Taxes.

Edward36

01-29-2012, 09:22 PM

Here in my part of Iowa it's 7% on services if you make over $5,000 a year.
So it would $7.00

CHEESE2009

01-29-2012, 09:48 PM

In my area you add 5% (GST/TPS) to your price;

My example price = $100

$100 + 5% = $105

Then you take your new price '$105' and add 9.5% to it (TVQ/QST);

105 + 9.5% = 114.97

dpld

01-30-2012, 09:07 AM

Yeah, NJ is 7% buy only on labor. No tax on material if you pay the tax when you but it or it would be double taxation. Also, disposal fees are non taxable. Gets crazy. We were audited a few years ago.

allthough the state allows deductions and has a line on the quarterly or monthly report, you are supposed to give the vendors you use a resale tax certificate and handle all yourself.
they don't really bust chops about it too much but they want you to have your certificate on file with your most active suppliers to minimize the deductions.

initially the deduction line was actually intended for the retail businesses that sold to other businesses for resale.

no one likes the resale certificate because it is a little extra work, not much, but it raises the red flag and the likelyhood of getting a audit if you have too many deductions for too much money each month.
they may all be legit but it is a hassle when you got to take the time and show all your paperwork to back the deductions and it also gives them the opportunity to scratch you for something else.